CA M. Lakshmanan
It is a welcome proposal that the government will pay the interest outstanding as on 31.12.2103 for the education loans taken up to 31.03.2009 and the borrower has to pay interest from 01.01.2014. But for those who have paid interest whether the same will be refunded or the interest portion will be deducted from the principal payable. While granting relief the prompt payers should also be encouraged. Otherwise in future such loans will not be repaid at all thinking that one day or other waiver will be announced and in a such a situation the prompt payers would be at a loss.
Related Press Release of Ministry of Finance Dated 17.02.2014 is as follows :-
Major Relief for Education Loan Borrowers, 9 Lakh Student Borrowers to Benefit
The Union Finance Minister Shri P. Chidambaram has announced a Moratorium period for all education loans taken-up to 31.3.2009 and outstanding on 31.12.2013. Government will take over the liability for outstanding interest as on 31.12.2013, but the borrower would have to pay interest for the period after 1.1.2014. Nearly 9 lakh students borrowers will benefit to the tune of approximately Rs2,600 crore.
Presenting the Interim Budget in the LokSabha today, the Union Finance Minister ShriChidambaram said that a sum of Rs 2,600 crore will be provided in the current financial year itself and this amount will be transferred to the Canara Bank. Mr. P. Chidambaram said that the Central scheme for interest subsidy was introduced in 2009-10 in respect of education loans disbursed after 1.4.2009. However, students who had borrowed before 31.3.2009 struggled to pay interest during the period of study and they deserved some relief.
Shri P. Chidambaram informed that ten years ago, only a few thousand students- mostly the well-connected- got education loans. At the end of December 2013, Public Sector Banks had 25,70,254 student loan accounts and the amount outstanding was Rs. 57,700 crore.
Author Bio
Dear Sir,
I have taken educational loan in 2008 for my B.tech studies. Currently,I’m paying the loan amount every month.Will I’m eligible to get refund or waive off paid interest on my loan. I have taken from INDIAN BANK …
Hi Sir,
I have taken educational loan in 2006 for my B.tech studies. Currently,I’m paying the loan amount every month.Will I’m eligible to get refund or waive off paid interest on my loan. I have taken from Andhra Bank..
I have education loan of Rs.2,40,000 sanctioned from SBI in 2011 for B.Tech. which I completed in July,2015. I have not paid anything yet. Am I eligible to avail the subsidy stated in Interim Budget 2014? If I am, what should I do to avail the subsidy? Also, my father died in 2012, if there is any waive off for that too? Please guide me.
i have got loan in 2006, for BE,i have got only 150000, for 3 sem,and repayed only 30000 . after that i didnt pay now the recovery officer calling me and tellig to pay 400000,what i need to do in this case,help me.
Hi,I have availed Educational Loan of Rs.1,83,000 from Indian Bank for the period 2007 to 2011.I have repayed the amount of Rs.1,30,000 within the year 2012 with great difficulty.Now applying an interest rate of 14.5%, the bank has raised a case in court to pay Rs.1,75,000.This is highly difficult for me to repay the amount and also I have lost peace of mind.
I have not applied for the waiver because of my non-awareness in stipulated time. I had taken the loan starting 2004 to 2008.
When I contacted the bank they are saying that now I can not avail this offer. But, the scheme of the government does not say any last date. Can I still approach the bank for the waiver.
Regards,
Rahul.
Dear Sir,
I have taken education loan from uco bank of amount 3.50 lac in 2011-13. I could not completed my MBA because the tuition fess was 5.10 & we were not able to pay the same after that i contacted my bank for top up bt they were nt agree for the same & college also were nt raedy to proceed my course without fees. So finaly i had to quite my MBA in 3rd sem. Now i am doing a job & my salary is very low due to the above mention reason. I have a family of one brother with parents apart from that i am getting only 15k that why i am not able to pay my dues & bank continuously harass me & my family.Please help me out how can i relief from this problem Because bank says to repay entire amount ?
Dear sir, I have taken a study loan of 2.6 lakh from sbi in 2008-10 for my mba. But due to not getting not getting any job I was not able to repay the same. Now when I contacted bank this month to start my repayment they have told me my ac is already write off and principle amount is 4.5 lac and asking me to do settle the account with paying some min 50% of the principle amount. So plz advice what should I do.
Sir,
I have taken education loan of Rs. 4,00,000 before 2009 for B.Tech course of my son. The interest waiver has been given to all who have taken loan upto 2009, in which my son case is also covered. But I have already paid more than Rs. 4,00,000. Last year I have requested the bank officials to close my account as I have already paid Rs.4,00,000 and also the govt has already waived the interest upto 2009. When I contacted the bank official, they said that the amount of Rs. 4,00,000 which i have already paid cannot be adjusted in the principle and also they said that as on today I have to pay an amount of Rs. 6,00,000/- I asked them I have taken loan of 4 lacks and i already paid 4 lacks then why i have to pay 6 lacks. They said that the principle of 4 lacks and interest total 6 lacks i have to pay. Being a retired employee i can not pay 6 lacks, I have already paid 4 lacks with great difficulty. I request you to kindly help me out for closing my loan account by adjusting the 4 lacks which i have already paid. I also request the Prime Minister of India to help me and do justice to me.
Respected sir, i applied for the loan in 26/june/2008 Loan document has prepared by bank i.e sanction letter from 5/04/2009 by the idbi bank kindly let me know
how i can avail the given benefit by government about the educational loan waiver, & what shall i tell them about it, last time when i complaint about it to the bank they has been resolved without solutions, then informed us there is no such information available so you have to pay the education laon repayment at 14.5% such high rate of interest.
kindly let me know how shall i make justice to my given situation. please let me know asap
yours sincerely
with regards,
rahul varma
Hi Sir,
I got loan of Rs.2.1 lacs as educational loan from sbi.(2007-11)
From 2012 i started repaying loan. And i’ve paid more than 2 lacs(inclusive interests)
By last year 2014 bank said that still having 80,000Rs as pricipal balanace.
And for subsidy i’m getting reply from branch it was not sanctioned and asking me to pay the balance.
If i receive subsidy i can close my loan
kindly suggest me how to proceed further?
i took loan in the year 2011 for mba course bu i not get good job and also i facing fincial problem for this reason i am not repaid what should i do.pls guide me
Respected sir,
M taken education loan for my BE in nov 2009 in SBI bank.is m applicable for this scheme??uptil now i paid money as much as possible to me but till lot of repayment is remains and as their rate of intress is 14.25% my cost of education loan is increases day by day.so plz reply is that subsidy is applicable to me??amount of education loan sanctioned & taken by me was 2.5lakh.so kindaly notice my request.
regards,
snehal
Dear Sir,
I have received educational loan between 2001-2004 for my engineering studies, I have paid few dues and unfortunately due to my financial problem not able to properly continue the dues, am i eligible for this subsidy? When i check with branch manager first he told i am not eligible for this then when i do continuous followup he told i am eligible for this subsidy. But he is asking me to repay the entire amount with full interest as he is not ready to forward through subsidy program. I am corner and i am don’t have that much huge money. I am ready to pay the amount and would like to close my educational loan as per subsidy program. I met manager lot of time but no use. Branch manager is not helping me, in this case what shall i do ? Kindly help. Dont know how to proceed as Branch Manager and Regional Manager are not ready to forward my case through subsidy program.
Thanks
Muthu
Sir my loan sanctioned for scholar loan in sbi for rs. 14 lack (in bits education) in session 14-15. can I eligible for intt. subsidy.
Mr.BinaVyas,
it is not clear to whom you addressed the letter in your post. (2) Please read the link: sbi.co.in/portal/web/personal-banking/central-scheme-for-interest-subsidy if your banker is SBI and most of it is applicable to all banks. (3) Subsidy is the INTEREST DUE ON 31/12/2013 AND assuming interest paid already will be re-imbursed is not correct. (4) IF the applicant is eligible for subsidy (above link) then his liability to bank is (a) balance principal as on 1/1/2014 and interest wef 1/1/2014 (b) total principal repaid till 31/12/2013 can be known from the bank statements of the loan account. (5) after submitting the application (ref the link above) to the bank which disbursed the loan, loanee should take an acknowledgement for the same and contact the nodal bank for quick processing. (6) if any problem of getting the acknowledgement from the bank, they can contact the Ombusdsman of the concerned bank requesting for quick disposal of the application (forwarding to Nodal bank designated branch for this purpse.
Dear sit i have question on interim budget there was an announcement for the education subsidy on interest on the loan taken by student.
but there is no answer from any corner of the bank/institution or from govt who will guide can you pl clarify how to proceed on this issue.
Dear sir
i had taken a loan for my son to accomplish his education in USA from your bank at belapur branch from navi mumbai.,During interim budget by sh chidumburumji he announce the EMI relief for the student i m eligible for this ,i am attaching the declaration for the same but afterwards there is no response from banks/institutions,they said we have no communication on the subject so guide us how to proceed,it would be nice if you elaborately educate me on my EMI RELIEF
With the general elections due in a couple of months, Finance Minister P. Chidambaram tried to endear himself to the families that have availed of educational loans from banks.
Presenting the Interim Budget for 2014-15 in the Lok Sakha on Monday, Chidambaram announced a moratorium period for all education loans taken up to March 31, 2009, and outstanding as of March 31, 2013.
INTERIM BUDGET 2014-15: Key highlights
He also said the government will take over the liability for outstanding interest as December 31, 2013, but the borrower would have to pay interest for the period after April 1, 2014.
He said nearly 900,000 student-borrowers would benefit to the tune of around Rs 2,600 crore.
Chidambaram said Rs 2,600 crore will be transferred to Canara Bank, the nodal bank managing the interest subsidy scheme on educational loans.
He said the interest subsidy scheme was introduced in 2009-10 for education loans disbursed after April 1, 2009, while students who had borrowed prior to that date deserve some relief.
i took loan on 23 jan 2009 & first disbursement was on 20th feb 2009 and still loan is outstanding and we are paying the EMI,Education loan account number is :123/123675100003315&customer ID is :48855089.(Chidambaram announced a moratorium period for all education loans taken up to March 31, 2009, and out-standings as of March 31, 2013.) INFORMATION IN BRACKET FOR MY ELIGIBILITY.
once again with heavy heart i need to inform you that there is no awareness in your employees on the subject & you guys are in the business it is very sorry state of affairs. i am your loyal customer & i have relation ship with the bank more then 20 years.
Dear sir did nit receive any communication from your said authorities nor any clarification pl revert back earliest before next budget is rolled out .
regards
Kamlesh
Mr.Neeraj Singh,
The branch should have forwarded to nodal bank, viz., Canara Bank for subsidy. Kindly ask them to do. Regarding the returning of the forwarded application to Main Branch after your approaching CBI, have the documents (forwarding and later withdrawing) copy with you and complain to PMO on it’s website stating for having approached the CHI online that you are being targeted this way. Ascertain weather you are really eligible for interest subsidy.
Sir i have took the education loan in 2010 for diploma …. and wat abut my interest weather i should pay or no
Hi Sir. I took loan in 2008 and as per eligibility norm for interest waiver up to 2013 I checked and am eligible for that. My branch forwarded claimed subsidy to regional office to approve and forward in June 2014 but no status. Then I complained on CBI website and then regional manager and branch manager contacted and told there is no such provision so my branch withdrawn the claim after regional office interference and now brach manager want to help me but he is not sure whether claim us correct and asking to contact as there is no RBI or bank notification to remove interest. Plse suggest what should I do.
Mr.Kabir: I am surprised you are confused even after clear SMS and customer care to you. Dont give any credence to the theory someone in bank demanded money. That cannot be true. Go to bank ask for the balance in the account as also printout of the statement. That will speak the facts. Act based upon what you get in black and white. Wish you good luck. We should appreciate the SBI Hoogly Rural branch in particular and SBI in general for acting on the govt. decision unlike many other banks.
Sir i had taken loan Auguest 2008 for my MBA 2008 – 10 from SBI rural branch Hooghly, West Bengal of Rs.328000 ,SBI disburshment Rs.300000 ,Rs.28000 settle with interest ,Now i have pay after got job after july 2010 ,pay upto march 2014 Rs 190000 , now bank credit Rs.31685 subsidy, i am belonging from EWS ,Recently 18 December 2014 I have received sms form CBSSBI that interest on account is changed to 0 % ,pleaase contact branch manager for any queries. SBI write off of RS.324566 ,my online account shown Matured / Closed Accounts then i have send my father with online page documnet bcz i am stay at Delhi. branch manager told that you cant deposit money but branch manager demand money and after written application you can , but I am asked cutomer care of SBI they are told don’t deposit any money so , i am confused please advice because i will meet with branch manger on 27-28 jan 2015. i am worried about this thing ,i have not getting full subsidy amount to my account.
sir i had taken loan Auguest 2008 for my MBA 2008 – 10 of Rs.328000 ,SBI disburshment Rs.300000 ,Rs.28000 settle with interest ,Now i have pay after got job after july 2010 ,pay upto march 2014 Rs 190000 , now bank credit Rs.31685 subsidy, i am belonging from EWS ,Recently mean december 2014 SBI write off of RS.324566 ,my online accont shown Matured / Closed Accounts ,in future bank demand for money,i have not getting full subsidy amount to my account.
Meena: As per the order, the interest outstanding as on 31/12/2013 will be waived. So, interest paid till Dec 2013 will not be adjusted with the principal. Find out the Loan taken, principal returned till 31st Dec. 2013 and calculate the net principal due as on 31/12/2013. All the interest that is due as on 1/1/2014 will be waived and you will have to pay the interest from 1/1/2014. Though this article is silent on eligibility criteria, it is certain the benefit is for EWS persons.
Hi Sudharsana,
Please advise will the already paid interest will be taken into consideration for adjusting the pricipal amount.
As i have took loan by 2006 (completed studies by 2009, we have paid interese till 2012.
Most important for those seeking education loan waiver: You have to make the application directly to the canara bank, the nodal bank. For more info pl read the link: canarabank.com/Upload/English/content/NEW%20CSIS.pdf
It may also be noted the scheme is only for EWS etc and not for all. 9880037215
Mr.Senthamarai: You are eligible for subsidy again as you got the previous subsidy for period upto 2009.
Mr.K.Lokesh: Lokadalath is for solution when the problem has different versions from the bank and the customer. There is no objection for you to go to it. In fact when you are not getting the required response you should go to banks ombusdman first for quick solution.
sir,
i got letter from bank relating to the lok adalath that bank is giving an stelement ..and in the prevoius months i have submited for waving of tax
is this best way to go to lok adalath for setlement or wait for the centeral government scheme..as i had taken Rs80,000/- in 2005 so at this time 9 years had passed. which one is best please sugest me
Hi,
I have completed MCA during 2006-2009. I borrowed educational loan 75000 Rs from IOB Bank and I got 19000Rs as interest subsidy in 2009. Still I am unable to pay educational loan 130000 Rs(with interest). My family annual income is 230000Rs. Am I eligible to get interest subsidy till 31-12-2013 under this scheme ?
PL keep in touch with the bank, which appears to have done very good action of intimating you of the scheme.
i have taken education loan of 80,000/- during my b.tech i did not got job .
in augest i got aletter from bank about interst waveing so, i submited all the documants when will i get free from loan
wen they will refund the money to candidates.
Dear Shobha,
Yes. The bank will normally collect it in one instalment at the end of the year. Pl check with your banker.
Mr. Vijay,
Subsidy should come to the bank and not to you. You neednot get worked up on that issue. Give a letter stating that (i) balance due on principal out of the loan as on 31/12/2013 (ii) to write off the interest component due till 31/12/2013, (iii) to recaclulate the EMI for the new principal from 1/1/2014 and (iv) request the bank to consider the EMI’s paid from 1/1/2014 as for the new EMI (to be communicated by them)(v)ask them to send your application to the nodal bank under intimation to you. You also inform that you are not liable to pay any interest that was due from you as on 31/12/2013.
I have availing education loan from 2013 onwards. Is there is interest to be paid during morotorium period ? please reply
Hello Sir,
I had availed education loan from syndicate bank in 2005. My father was paying only interest till I got the job in 2012. After that I have been paying the installments set by the bank. Now, the principal amount got reduced from 326000 to 181000. I had asked to submit documents for availing the subsidy in May and I did as asked by Bank. Now, its been more than 6 months after I had submitted the documents. When asked bank officials, they say that they are also waiting for the same. When can I get the subsidy, since I am paying more than 2500 towards interest every month. What should I do to get the subsidy faster, since i got to know other banks in my city as already paid subsidy to the beneficiary.
SIR I HAVE GOT EDU LOAN FROM SBI FOR MBA DURING 2006-2008 WITH PRINCIPLE AMT Rs.1,13,000/-AND PAID AROUND Rs.50000 AND NOW BANK HAS SEND ME LAWYER NOTICE TO PAY Rs.1,70,000/-WITH IN 10 DAYS OR ELSE TO MEET SEVIER CONCEQUENCES WHAT CAN I DO FOR THIS ???
Dear Balaji K,
Yes. Take action as below (12/11/2014) which is applicable to you also. Nothing happens by itself and one has to work to get the result. Good luck.
Hi,
I did my MCA in 2006-2009. I got educational loan from Indian Overseas Bank, Erode and I am still not able to complete my loan repayment. Will I
be considered for the interest relief up to 2013 announced in the budget ? Thanks in advance.
Mr.Mallikarjun / Naim,
You are entitled for subsidy of the outstanding interest as on 31/12/2013 and liable to repay the balance principle and interest from 1/1/2014. You have to do some work for the same. (i) Collect the statements from the bank and seggregare the principle repaid by you as per monthly entries of your EMI repayment. till 12/2013. (ii) Compute the balance principle due as on 1/1/2014. (iii) Request the bank to forward your request for subsidy of interest due as on 31/12/2013 to the nodal bank, viz., Canara Bank. (b) to compute the revised EMI with the balance principle as the amount due wef 1/1/2014. (iv) Take the official acknowledgement from bank for your letters.9880037215, sudacgwb@yahoo.com
HI SIR, My wife availed education loan of about 7.12 laks in march 2009. sir iam paying interest regularly can the central govt education loan interest waive off is applicable to her? bank people say it is not applicable(COPORATION BANK KARNATAKA)Sir please guide me
Hi Dear mr sudharshana
I took Rupees 10 lac loan in DEC 2007
for COmmercial pilot training
i did not get the job AND NOT IN A CONDITION TO PAY
WORKING IN A CALL CENTRE TO HELP MY FAMILY
Dear Naveen, Vinutha et.al,
I am getting mails calls regarding the difficulties faced by the beneficiaries of student loan while their interaction with banks. It is to be noted that the govt. order is not a charity being given to beneficiaries by banks. This subsidy is fully financed by the Modiji’s govt at the centre. In this regard the eligible beneficiaries (taken the loan before 2009 and having interest liability as on 31/12/2013) have to take the following steps:1. Seek the statement from bank incluidng the principal and interest due as on 31/12/2013 and obtain the acknowledgement, informing them that they will be claiiming the interest subsidy as per govt. notification. 2. If the information is not forthcoming (as is the case with many beneficiaries) they should give a reminder informing that they will be contacting the “ombudsman” of the bank for the desired information. 3. After getting the correct figure of the interest as on 31/12/2013 make a formal application for the interest subsidy to the nodal bank through the bank from which the loan was taken and inform the 4. bank (from which the laon was taken to recalculate the EMI taking only the principle due as on 31/12/2013. sudacgwb@yahoo.com 9880037215
Waiver is for the interest due and not already paid!
Hello Sir,
I had taken loan from SBI in 2005 for admission to Btech course. I was not able to repay the loan amount when I passed out in 2009 and managed to repay it in August,2014 the present year. I heard the loan interest waiver news now only. Am I eligible for the waiver? Can I get the paid interest back?
Please advice.
Thank You.
Dear Vinutha,
Make an application to the bank for a (a) statement giving the outstanding interest due as on 31/12/2013 and the (b) waive the same as per the govt. notification. You may also tell them to recalculate the EMI for the balance principal amount for the remaining period. This will help you to account more amount towards principal repayment,and lesser interest liability. Make a copy to the Ombudsman of your bank.
Mr Atul,
As you have paid the EMI in time the bank manager may be under the impression that no interest is due in respect of the period refered in the Govt Order. Please give an application to the bank manager that (1) the Order has not mentioned about defauters and (2) the whole of the interest for the period under question is to be waved off.
Dear Sir,
I took education loan of 3 lac in 2008 for 4 yrs course(75k per year) and also paid loan EMI as per time.After releasing of interest subsidiary scheme this year,my bank manager called me to fill scheme forms and other procedure. I submitted the same 3 Months ago but now bank manager is saying i am not eligible for the scheme since i had paid the interest on time. But this is not mentioned anywhere in circular that a person who has paid interest during study period or moratorium period is not eligible for this scheme. Sir please guide me.. should i approach banking lokpal.
Thanking you
Vinutha: 1. Honestly, I could not understand “…… when I am pressing above mentioned i d ….”, stated by you. 2. Bank is justifying in asking you to pay their due, because if they dont, then who will force the borrower?!. 3. You must be eligible for the subsidy with the little input I have from you in these columns. 4. You didn’t act on my suggestion regarding the statement from bank. 5. Pl ask the manager thro a letter and an email for a statement giving the principal and interest part of EMI due and paid by you and the balance outstanding.
thanks for your instant reply sir iam feeling happy from your words sir if iam benifited from the interest subsidy ill be thankfull to you throughout my life sir…till last month(on 13/08/2014 paid 4000 as my last pay to the bank)i have paid sir except for few months where i have missed to pay in between because of financial constraints..
when iam clicking on above mentioned i.d (in your given answer )its showing outlook encryption and iam not able to open or see anything sir …
now bank manager is calling and forcing me to pay atleast 6000 or ill become N.P.A he is saying ….(its quite confusing sir. according to bank iam not eligible for subsidy because i have started paying my loan then if i become n.p.a atleast then ill be benifitted for interest subsidy no sir then why he is telling me to pay now only to avoid becoming from n.p.a )should i pay n avoid sir or is it better to wait and see .who is the best person to contact on this sir……thank you so muc sir ….